Ahlstrom's holding in Munksjö is included in other investments in the balance sheet and is valued at fair value. Ahlstrom will book a capital loss of EUR 0.7 million from the transaction in its Q1/2014 financial accounts.
Based on a price risk sharing agreement between Ahlstrom and EQT, the largest shareholder in Munksjö, Ahlstrom is entitled to compensation from EQT in Munksjö shares for 50% of the difference between the original subscription price of the sold shares and the selling price.
Due to the agreement Ahlstrom has recorded in the 2013 financial accounts an income of EUR 3.8 million and will record a further income of 0.4 million in its Q1/2014 financial accounts. In total, the impact on Ahlstrom's equity will be negative EUR 0.4 million.
"This was the appropriate time to reduce our shareholding in Munksjö given the interest in the market. By this transaction we strengthen our balance sheet, and at the same time Munksjö's shareholder base will be broadened," said Ahlstrom's President & CEO Jan Lång.
A total of 700,000 of the sold shares valued at approximately EUR 3.57 million are sold to Vimpu Intressenter Ab, the largest shareholder of Ahlstrom.
Following the sale of shares, Ahlstrom's shareholding in Munksjö will be 6,767,220 shares, representing 13.25% of total shares. Assuming EQT will compensate Ahlstrom in Munksjö shares, Ahlstrom's shareholding in Munksjö will increase to 7,585,873, or 14.86% of the total shares.
Ahlstrom is a high performance fiber-based materials company, partnering with leading businesses around the world to help them stay ahead. Our products are used in a large variety of everyday applications, such as filters, medical gowns and drapes, diagnostics, wallcoverings, flooring and food packaging. We have a leading market position in the businesses in which we operate.
Textiles | On 19th Jun 2018
The requirement of polyester filament yarn (PFY) is increasing as it...
Textiles | On 19th Jun 2018
The Sustainable Apparel Coalition (SAC) will release this year a...
Apparel/Garments | On 19th Jun 2018
Noon, the $1 billion e-commerce venture backed by Dubai businessman...
Moving towards sustainability is also a social change
Shades of India
Women value something that is unique and has a flavour of India
Every market region has its own culture and trends
<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...
Colorjet is among the fastest-growing wide format digital inkjet print...
Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...
Voith Paper GmbH & Co. KG
The glass mat industry is growing by five to eight per cent annually. Kai...
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...
Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...
From its modest beginning in the late 1960s, Shrujan has grown into a...
Golfwear and menswear brand Devereux is set for greener pastures. Robert...